American History Chapter 19-2

A New Economic Era

Automobiles Change Industry

• Late 1800s: Cars were toys for the rich only.• Henry Ford’s Model T changed American society.

Cars Became Affordable• Ford created the 1st assembly line for autos.– Item being built moves on a conveyor belt to different

workstations.

• By 1928 Ford Co. produced a car every minute.– 22 million cars in the U.S. by 1929.– Cost dropped below $500/car.

Car Industry Continued:• Ford Motor Co. dominated in the 1920s.– Ford paid workers well but was anti-union.

• Competition grew as GM & Chrysler came out with new designs/colors.

• Car manufacturing increased the demand for other products & businesses related to autos.– Rubber, steel, glass, petrol, etc.

• Other industries went to assembly line usage.– Productivity rose by 60%: Output per unit of input.– Welfare capitalism grew: Benefits provided to workers.

• Retirement pensions and recreation programs.

Recreation Programs

American Society Changes

• City populations boomed due to increased manufacturing.– Suburbs grew as cars allowed people to be more mobile.

• Tourism increased.

The New Consumer• New products: Electric refrigerators/vacuums.• The radio becomes highly popular.– Radio unified people.

• The airplane became a choice for public transportation.• Advertising became a huge industry.– Created a demand for products.

• Consumers began using installment buying or buying on credit.

Radio

Roaring Twenties Not Prosperous For All

• Farmers struggled:– Demand decreased & crop prices plummeted.– Competition increased as Europe rebounded.– Natural disasters took a toll.

• Floods, insects, hurricanes.

– Farm foreclosures increased.

Even When Things Seem Their Worst